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- Jena Economic Resea...
- Volume 5
- The Effect of Finan...
The Effect of Financial Incentives and Task-specific
Cognitive Abilities on Task Performance
- Abgebildete Person
- Erschienen
- 2. November 2011
- Nummer des Discussion-Papers
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2011-050
- Schlagwort(e)
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Cognitive ability
Experiment
Financial incentives
Performance
- Zusammenfsg.
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We extend evidence on the interaction between financial incentives and cognitive abilities by focusing on the effect of task-specific abilities. In a memory-intensive task situated in an accounting context, the effect of accounting education on performance is stronger under financial incentives as compared to flat rate pay. Subjects with more accounting education respond stronger to financial incentives. Hence using incentives efficiently may involve targeting them at high-ability individuals. More generally, taking into account the incentive-ability interaction seems important when interpreting observed behavior in cognitively demanding lab and field economic environments.
- article pub. typess JER
- Research article
- article languages JER
- Englisch
- JEL-Classification for JER
- C81 - Microeconomic Data ; C91 - Laboratory, Individual Behavior ; C93 - Field Experiments ; D83 - Search; Learning; Information and Knowledge; Communication; Belief